Bithumb accidentally distributes billions in Bitcoin due to configuration error

South Korean cryptocurrency exchange Bithumb experienced a significant system configuration error on Feb. 6, 2026, that led to the erroneous distribution of billions of dollars worth of Bitcoin to users, HackRead reports.

During a promotional event, a configuration error caused Bithumb to credit approximately 695 user accounts with at least 2,000 Bitcoin each, instead of the intended small reward equivalent to about $1.40. This resulted in an estimated 620,000 BTC being misallocated, valued in the tens of billions of dollars. The sudden influx of Bitcoin on the exchange caused its price to drop by approximately 17% relative to other markets. Bithumb's officials intervened within 35 minutes, restricting trading and withdrawals on affected accounts and have since recovered 99.7% of the misplaced cryptocurrency. The exchange confirmed the incident was an internal operational mistake, not a hack, and assured customers that their assets remain secure.

The incident has prompted South Korean financial regulators to hold emergency talks, raising concerns about vulnerabilities in crypto trading systems. Officials may conduct on-site inspections of Bithumb's controls, especially given the exchange's history of security failures, including a $31 million hack in 2018 and a $20 million breach in April 2024, which reportedly involved an insider.

Source: HackRead